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CMC Markets FX US existing home sales fell 2.0% to 4.93 mln but not as Service negative as the expected 4.92 mln target. CAD weakness to EUR strength to dominate today's trade. Software Demo The Bank of Canada has opted for the aggressive option and Open an Account cut its overnight interest rate by 50 bps to 3.00%, the lowest Free Seminars since October 2005. The BoC explained the move with "the effects of a sharp slowdown in the U.S. economy and ongoing dislocations in global financial markets". Despite having cut rates by 150 bps over the last five months, the BoC sees "some further monetary stimulus will likely be required to achieve the inflation target over the medium term". Last week, March inflation dipped to a 14-month low at 1.4%, while core CPI slowed to 1.3%, its lowest in 3 years, well below the central bank's preferred target of 2.00%. With the BoC projecting "a deeper and more protracted slowdown in the U.S. economy", as Ashraf Laidi, Chief FX well as the need to lift CPI back towards target, we expect 75- Analyst at CMC bps more in interest rate cuts later this year, bringing the rate Markets, oversees the to 2.25%, which will extend broad downside on the loonie, especially against the USD and EUR. analysis and Last week we highlighted out our broad pessimism in forecasting functions the Canadian dollar following the release of the March of key currency pairs CPI report. CAD bearishness is especially highlighted by the as well as decisions currency's muted response to soaring oil prices. On Friday's FX and trends of the Charts strategy, we highlighted our bullishness for EURCAD to breach the ensuing wedge of 1.5950 and onto 1.61. USCAD major global central has now climbed past the target and onto1.6150. We expect banks. Mr. Laidi is EURCAD to regain the April 14 high of 1.626 before month-end also responsible for but to encounter pressure at 1.6320. education and USDCAD soars by a full cent to 1.0150, just shy of the 1.1060 informing clients on resistance, which is the 50% retracement of the decline from the 1.0320 high to the 0.9666 low. We expect further gains the essential towards 1.02 in line with forecast projected for month-end dynamics carried out on April 1st. In the event that the Fed slashes rates underpinning FX by 25 bps next week (we're leaning towards 50 bps), USDCAD markets. will likely extend gains towards 1.0275-80. Support climbs to p arity. Prior to joining CMC, Mr. Laidi has worked for such varied organizations as the United Nations, the World Bank, and Reuters. Mr. Laidi regularly provides expert opinion to various electronic, print and the broadcast media outlets. Mr. Laidi has appeared regularly on CNBC-TV, Bloomberg TV, the BBC and PBS' Nightly Business Report. His insights also appear in the Financial Times, The Wall Street Journal, Barron's, The New York Times, CBS Marketwatch, TheStreet.com, Futures Magazine and a host of other international publications. Legal Privacy Statement Risk Warning US ClientsForeign Currency trading carries a high degree of risk and may result in serious financial loss. Foreign Currency trading is not suitable for everyone. CMC Markets is remunerated for its services from the spread between the bid and ask prices. CMC Markets (US) LLC is remunerated on the bid/ask price. In situations where third parties introduce customers to CMC Markets commissions may be charged or compensation provided through the bid and ask spread.
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This publication is intended to be used for information purposes only and does not constitute investment advice.
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